Financial tools like stablecoins are quickly becoming essential for people and businesses across Latin America. Many financial experts believe these digital currencies could unlock new opportunities, especially for those without traditional bank accounts. But there’s a catch: how governments choose to regulate them could either help or hurt this progress.
These ideas came up at a recent Cripto Latin Fest event held at the Medellín Botanical Garden. Business leaders and financial experts discussed how stablecoins are changing the game. They focused on ways to bring more people into the financial system, how these digital coins are used for sending money across borders, and the big debate around new rules.
Stablecoins: A New Way to Access Money
Lina Escarraga, who works with Celo and CCOP, explained how stablecoins are reaching communities. She noted they offer new ways to save, borrow, and invest, even allowing people to send money home with lower fees and faster speeds. This gives more people access to financial services they might have missed before.
Estefanía Granados from Wenia shared a real-world example from Colombia. People there can’t open bank accounts in US dollars. But Wenia lets them use local currency to buy stablecoins, like USDC. Wenia even offers rewards, sometimes up to 6% annually on these digital dollars. Granados pointed out that the money sent home by Colombians now brings in more than the country’s oil industry. Wenia also offers “Global Accounts” to help people and businesses receive money from outside the country, turning it into stablecoins for use on their platform. This is a big deal since Colombian banks don’t typically allow accounts in foreign currencies.
How Businesses and Banks Are Using Them
Johan Hernández from Towerbank explained that stablecoin use really depends on the situation in each country. For instance, in Bolivia, companies couldn’t get US dollars for a while. Once the rules changed to allow crypto, businesses started using stablecoins to pay their international suppliers. Towerbank, based in Panama, also uses these assets to make transactions easier with countries where dealing directly in US dollars is tricky. Hernández believes stablecoins have earned their place. Banks now need to learn about digital assets to keep things safe and smooth.
Álvaro Olivares from BitGo wondered how to get stablecoins into more everyday businesses. He said many businesses never had easy access to foreign currency markets. Stablecoins are changing that. Olivares noted that when governments create clear rules, businesses tend to get more interested in using these digital tools. In Brazil, stablecoins are popular because they make operations cheaper. Meanwhile, in Venezuela, these digital coins are often the only way to do business internationally. Olivares made it clear: this isn’t just about choosing a new tech tool; it’s about economic necessity for many.
Regulations: A Double-Edged Sword
The talk about stablecoin rules sparked a lively debate. Everyone agreed that clear rules can make things safer and fairer, which brings in more users and businesses. But they also warned that too many rules could stop new ideas and leave millions of people out.
Granados argued that strong legal frameworks protect customers and build trust, which is key for growth. Escarraga agreed that guidelines are needed. However, she stressed that decentralized stablecoins should stay free from too many restrictions, giving people true financial independence.
Manuel Ferrari from ONG Bitcoin Argentina/Money on Chain was more critical. He warned that strict rules can actually hurt society. He reminded everyone that in Argentina, limits on foreign currency led to a boom in Bitcoin because it couldn’t be controlled. Ferrari believes bad rules could even ruin economies and markets.
Hernández offered a middle ground. He suggested working with regulators, much like Towerbank did in Panama. This helps avoid rules that could block new financial ideas. Olivares pointed to big companies like NuBank in Brazil getting into stablecoins, showing that sensible rules can help many more people start using them.
The group ultimately agreed on this: helpful rules benefit everyone. But poorly designed regulations could slow down new ideas and limit financial access for those who need it most.
Looking Ahead: Global Growth
The speakers wrapped up by saying that stablecoins need a good balance between flexible rules and user safety to grow. Granados mentioned the GENIUS Act in the United States. This new proposal could boost stablecoins around the world by changing how their reserves are managed.
Hernández highlighted a key benefit: stablecoins offer a clear record of transactions. This gives regulators and financial groups more information, building trust in the system. Escarraga closed the discussion by focusing on the most important goal: reaching people who don’t have bank accounts and giving them real choices outside the traditional financial system.